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Minutes 2003-11-11 MINUTES REGULAR MEETING OF THE CITY COUNCIUREDEVELOPMENT AGENCY TUESDAY, NOVEMBER 11, 2003 COUNCIL CHAMBERS, 215 EAST BRANCH STREET ARROYO GRANDE, CALIFORNIA 1. CALL TO ORDER Mayor/Chair Ferrara called the Regular City Council/Redevelopment Agency meeting to order at 7:00 p.m. 2. ROLL CALL City Council: Council Member Lubin, Costello, Mayor Pro Tem Dickens, and Mayor Ferrara were present. Council Member Runels was absent. RDA: Board Member Lubin, Costello, Vice Chair Dickens, and Chair Ferrara were present. Board Member Runels was absent. City Staff Present: City Manager Adams, City Attorney Carmel, Director of Administrative Services Wetmore, Director of Financial Services Snodgrass, Director of Building and Fire/Fire Chief Fibich, Acting Community . Development Director Heffernon, and Assistant Planner Bergman. 3. FLAG SALUTE Steve Champeau, Jr. Vice Commander, VFW Post 28/29, led the Flag Salute. 4. INVOCATION Mayor/Chair Ferrara delivered the invocation. 5. SPECIAL PRESENT A TIONS 5.a. Proclamation Recognizing the 50th Anniversary of Veterans Day~ November 11, 2003. Mayor Ferrara presented an Honorary Proclamation recognizing the 50th Anniversary of Veterans Day, November 11, 2003. Steve Champeau, Jr. Vice Commander of VFW Post 28/29 accepted the Proclamation. . 5.b. Mayor's Commendation Recognizing Corporal Nicholas Emmerling, United States Marine Corps. Mayor Ferrara presented a Mayor's Commendation to Corporal Nicholas Emmerling in recognition of his participation in the United States Marine Corps, Combat Service Support Group in Operation Iraqi Freedom. CITY COUNCIUREDEVELOPMENT AGENCY MINUTES NOVEMBER 11, 2003 PAGE 2 6. AGENDA REVIEW 6.a. Resolutions and Ordinances Read in Title Only Mayor Pro Tem Dickens moved, Council Member Lubin seconded, and the motion passed unanimously that all resolutions and ordinances presented at the meeting shall be read in title only and all further reading be waived. 7. CITIZENS' INPUT. COMMENTS. AND SUGGESTIONS None. 8. CONSENT AGENDA Council Member Costello moved, and Mayor Pro Tem Dickens seconded the motion to approve Consent Agenda Jtems 8.a. through 8.e., with the recommended courses of action. The motion carried on the following roll-call vote, to wit: AYES: Costello, Dickens, Lubin, and Ferrara NOES: None ABSENT: Runels 8.a. Cash Disbursement Ratification. Action: Approved the listing of cash disbursements for the period October 15, 2003 through October 31 , 2003. 8.b. Statement of Investment Deposits. Action: Received and filed the report of current investment deposits as of October 31, 2003. 8.c. Consideration of Approval of Minutes. Action: Approved the minutes of the Regular City Council Meeting of October 28,2003 as submitted. 8.d. Consideration of Appeal of Viewshed Review Case No. 03-004; 195 North Elm Street. Action: Adopted Resolution No. 3718 upholding the appeal of the Planning Commission's denial of Viewshed Review Case No. 03-004. 8.e. Consideration of Authorization to Refund Application Fee - Watershed Education Fair and Creek Clean-Up Day. Action: Approved the request from Central Coast Salmon Enhancement, Inc. to refund the application fee for Temporary Use Permit 03-023. Mayor Ferrara requested, and the Council unanimously concurred, to move New Business Items 11.a. and 11.b. up on the Agenda to be heard before Public Hearing Item 9.c. 9. PUBLIC HEARINGS: 9.a. Continued Public Hearing - Consideration of Appeal of Amended Conditional Use Permit Case No. 03-004; 1220 Farroll Avenue. "-"-------- ---- -......., CITY COUNCIUREDEVELOPMENT AGENCY MINUTES NOVEMBER 11, 2003 PAGE 3 Assistant Planner Bergman presented the staff report and recommended the Council adopt a Resolution denying the appeal and requiring the placement of two fire hydrants on the subject property. Director of Building and Fire/Fire Chief Fibich responded to questions from Council. Mayor Ferrara opened the Public Hearing. Lance Tullis, appellant, asked questions of Fire Chief Fibich regarding the required number and placement of fire hydrants; volunteer firefighter training; how the Chief rated the AGFD in the firefighting exercise example illustrated in the staff report; and concluded by requesting the Council waive the requirement for the second fire hydrant. He further requested that should the Council deny the appeal and require the placement of two fire hydrants, that the Council extend the required time for compliance from 60 days to 180 days. Upon hearing no further pubJic comments, Mayor Ferrara closed the PubJic Hearing. Council Member Lubin expressed that his first and primary concern is with safety. He supported the requirement for the installation of the second fire hydrant, and stated that although he was hesitant to extend the time for compliance, he could support the requested 180 days. Council Member Costello agreed that the primary issue is safety and that the second fire hydrant was absolutely necessary for the rear of the property. He supported the request for 180-day compliance and suggested that the property owner should be responsible for some of the costs. He supported staff's recommendation. Mayor Pro T em Dickens expressed concern regarding the need for the fire hydrant condition considering the length of time the use has existed without the additional fire hydrants. He stated there are secondary benefits for the proposed placement of the hydrants, including the unprotected 22-unit residential development located directly across the street from the proposed hydrant location. He commented that it was unreasonable to have the applicant bear the full costs of the improvements and proposed that the City share half the cost with the applicant. Mayor Ferrara commented that a 180-day compliance condition seemed reasonabJe. He supported the requirement for the second fire hydrant; however, he said he would like to look into some form of cost sharing, considering the public benefits provided by the project. Council Member Lubin inquired what the City's recourse was if the 180 day compliance condition was not met. Discussion ensued with regard to the requirement of a performance bond, and whether or not the City could share in the cost of a portion of the required work. City Manager Adams suggested that a letter of credit could be required instead of a performance bond. CITY COUNCIUREDEVELOPMENT AGENCY MINUTES NOVEMBER 11, 2003 PAGE 4 Following discussion, Council Member Costello moved to adopt a Resolution, as amended, denying the appeal of the Planning Commission's approval of Amended Conditional Use Permit 03-004 and requiring the placement of two fire hydrants on the subject property; extending the time for compliance to 180 days; and directing staff to explore the possibility of cost sharing alternatives with the applicant. City Attorney Carmel recommended the motion include an amendment to Condition of Approval #9 as follows: "The applicant shall post a letter of credit in an amount estimated by the Fire Chief to satisfy the total cost of installation of both hydrants within 10 days of the date of approval. Both fire hydrants are to be installed within one hundred eighty (180) days of the date of approval." Council Member Costello agreed to the amended motion. Council Member Lubin seconded the amended motion, and on the following roll-call vote, to wit: AYES: Costello, Lubin, Dickens, and Ferrara NOES: None ABSENT: Runels There being 4 AYES, 0 NOES, and 1 ABSENT, the motion is hereby declared to be passed. 9.b. Consideration of Resolution Modifying the Rate Structure for Existing Development Impact Fees. City Manager Adams presented the staff report and recommended the Council adopt a Resolution modifying the development impact fee rate structure. Mr. Joe Colgan, MAXIMUS representative, gave a brief overview of the proposal to refine the way fees are applied to projects and to make it easier to administer the fees. Mayor Ferrara opened the Public Hearing, and upon hearing no comments, he closed the Public Hearing. Council Member Lubin moved to adopt a Resolution modifying the Development Impact Fee Schedule. Mayor Pro Tem Dickens seconded the motion, and on the following roll call vote, to wit: AYES: Lubin, Dickens, Costello, and Ferrara NOES: None ABSENT: Runels There being 4 AYES, 0 NOES, and 1 ABSENT, the motion is hereby declared to be passed. CITY COUNCIUREDEVELOPMENT AGENCY MINUTES NOVEMBER 11, 2003 PAGE 5 10. CONTINUED BUSINESS: None. 11. NEW BUSINESS: 11.a. Consideration of Business License Ordinance Repealing Chapters 5.04, 5.08, 5.12, 5.20, 5.32, 5.40, 5.48 and 5.76 of Title 5 of the Arroyo Grande Municipal Code and Adding Thereto a New Chapter 5.02 Regarding Business Licenses, and a Resolution Establishing an Annual Business License Fee Schedule. Financial Services Director Snodgrass presented the staff report and recommended the Council: 1) Adopt an Ordinance repealing Chapters 5.04, 5.08, 5.12, 5.20, 5.32, 5.40, 5.48 and 5.76 of Title 5 of the Arroyo Grande Municipal Code and adding a new Chapter 5.02 regarding Business Licenses; and, 2) Adopt a Resolution establishing a Business License Fee Schedule. Mayor Ferrara opened up the item for public comment. Mr. Dallen asked what were the current and proposed costs for a business license. Financial Services Director Snodgrass responded the business license would increase from $25 to $30 and the additional per employee cost would increase from $4 to $5 per employee. When no one further came forward, Mayor Ferrara closed the floor to public comment and brought the item back to Council for consideration. Council Member Costello moved to adopt an Ordinance repealing Chapters 5.04, 5.08, 5.12, 5.20, 5.32, 5.40, 5.48 and 5.76 of Title 5 of the Arroyo Grande Municipal Code and adding a new Chapter 5.02 regarding Business Licenses. Mayor Pro Tem Dickens seconded the motion, and on the following roll call vote, to wit: AYES: Costello, Dickens, Lubin, and Ferrara NOES: None ABSENT: Runels There being 4 AYES, 0 NOES, and 1 ABSENT, the motion is hereby declared to be passed. Council Member Costello moved to 'adopt a Resolutron establishing a Business License Fee Schedule. Mayor Pro Tem Dickens seconded the motion, and on the following roll call vote, to wit: . ------ .-.-- ~---_._._--" .~....- CITY COUNCIUREDEVELOPMENT AGENCY MINUTES NOVEMBER 11, 2003 PAGE 6 AYES: Costello, Dickens, Lubin, and Ferrara NOES: None ABSENT: Runels There being 4 AYES, 0 NOES, and 1 ABSENT, the motion is hereby decJared to be passed. 11.b. Consideration of Fiscal Year 2003-04 First Quarter Budget Status Report. [COUNCIURDA] Financial Services Director Snodgrass presented the staff report and recommended the Council/RDA Board: 1) Approve carryover appropriations as detailed; 2) Approve detailed budget adjustments and recommendations; 3) Approve/Deny requests for additional appropriations in the General Fund as detailed; and, 4) Approve Schedules A through F included in the First Quarter Status Report. Mayor/Chair Ferrara opened up the item for public comment, and when no one came forward, he closed the floor to public comment and brought the item back to Council for consideration. Council/Board Member Lubin moved to 1) Approve carryover appropriations as detailed; 2) Approve detailed budget adjustments and recommendations; 3) Approve/Deny requests for additional appropriations in the General Fund as detailed; and, 4) Approve Schedules A through F included in the First Quarter Status Report. Mayor Pro TemNice Chair Dickens seconded the motion, and on the following roll- call vote, to wit: AYES: Lubin, Dickens, Costello, and Ferrara NOES: None ABSENT: Runels There being 4 AYES, 0 NOES, and 1 ABSENT, the motion is hereby declared to be passed. 9.c. Consideration of General Plan Amendment Case No. 03-005 - City of Arroyo Grande Housing Element. Acting Community Development Director ("Acting Director") Heffernon presented an overview of the goals, policies and programs contained in the 2003 Draft Housing Element and recommended the Council adopt a Resolution approving the 2003 Housing Element, adopting a Negative Declaration, instructing the Director of Administrative Services to file a Notice of Determination, and approving General Plan Amendment 03-005. Mayor Ferrara opened the Public Hearing. -~-",~- CITY COUNCIUREDEVELOPMENT AGENCY MINUTES NOVEMBER 11, 2003 PAGE 7 John Foundis, 2nd Vice President of SLO County League of Women Voters, spoke in favor of the draft Housing Element and expressed strong support for providing workforce and affordable housing. Risa Kaiser. Arroyo Grande resident, spoke in support of programs to provide low and moderate incom~ housing as described in Housing Element programs A.2-2, A.9-1, A.11-1, B.1-1, B.2-1, C.4-2, D.1-1, F.1-1, H.1-2, J.5-1 and P.1-1. John Keen, Arroyo Grande resident, referred to page 4 of the staff report, item B.4-1 and expressed concern with increasing the residential height limit to three stories or 30 feet, whichever is less. He stated this could be too high for single-famiJy residential districts. He suggested modifications to Policy B.4. on page 10 of the draft Housing Element and Program B.4-1 on page 12 of the draft Housing Element to limit this requirement to Mixed Use and Multi-Family districts. Carol Hatley, Arroyo Grande resident and Finance Director for the San Luis Obispo Housing Authority, spoke in support of the draft Housing Element programs and policies, and stated that the Housing Authority is working with the City on an agreement for monitoring affordable units. Hearing no further public comments, Mayor Ferrara closed the Public Hearing. Council Member Lubin asked for clarification on Program A.4-1. Acting Director Heffernon explained that the intent is to intensify appropriate residential Jand use by establishing a minimum residential density. Council Member Lubin asked for clarification on Program B.1-1 and expressed concern about the "roll-over" provision of the 30-year restriction upon the sale or change of ownership of affordable units. He also agreed with Mr. Keen's comments regarding the suggested modification to the residential height limit by specifying that it applies only to Mixed Use and Multi-Family residential districts. He then asked for clarification on Program J.4-1. Acting Director Heffernon explained that the intent is to allow larger homes on smaller lots to encourage development of housing to support large families. Council Member Costello referred to Policy A.4 which would establish minimum residential densities and inquired if this could cause economic hardship. Acting Director Heffernon responded that only exceptions for environmental constraints could be considered. Council Member Costello referred to Policy A.6. and inquired about the process for assuming regulatory control from the State for manufactured housing, manufactured home parks and mobile home parks. Acting Director -Heffernon replied there would be paperwork to process through the State to assume regulatory control. Council Member Costello referred to and asked for clarification of Policies F.1-1 and G.1-1 and also referred to the TabJe on page 64 and inquired as to where the -~-- - -~- ,-.--_._- -...... CITY COUNCIUREDEVELOPMENT AGENCY MINUTES NOVEMBER 11, 2003 PAGE 8 numbers in the Table came from. Acting Director Heffernon clarified that Policy F. 1-1 requires at least 10% of every new housing project greater than nine (9) units to contain inclusionary housing, ensuring that for every ten (10) homes constructed, at Jeast one (1) would be affordabJe; cJarified that in Policy G.1-1, an administrative Minor Use Permit would be processed for projects including affordable housing to allow for reductions within ten percent (10%) of Development Code standards, similar to the existing Minor Exception process; and provided an overview of the preliminary estimated figures listed in the Regional Housing Needs Allocation Comparison on page 64 and indicated that the estimates would likely change. Mayor Pro T em Dickens referred to the Regional Housing Needs Allocation by Income Table on page 2 of the staff report and inquired whether any of the permits issued for the 331 residential units since January 2001 were for moderate-income units. Acting Director Heffernon replied that moderate-income units are deed- restricted and that none of the 331 units were deed-restricted to moderate-income families. Mayor Pro Tem Dickens agreed with the deletion of Program B.3-2 as noted in the draft Housing Element. He also inquired about density bonuses and Acting Director Heffernon explained that programs in the Housing Element acknowledge and identify the need for very-low and low-income housing units. Mayor Ferrara submitted in writing his recommended modifications to the Housing Element. Following review and discussion, the Council unanimously concurred to make the following modifications to the Housing Element: - Policy A.2. - Direct staff to insert language regarding circumstances where density bonuses would be granted or applied. - Program A.11-1 - Direct staff to ensure that there is consistency regarding Density Bonuses, specifically with regard to Policies A.1., A.2. and A.9. - Modify Policy C.1. to read as follows: "The City shall establish criterion for allocating financial resources from its In-Lieu Affordable Housing Fund and Redevelopment Agency (RDA) Low and Moderate Housing Fund to augment very low and low-income housing development." - Modify Program C.1-1 to include a statement that the City shall allocate financial resources to augment very low and low-income housing development based on the financial projection from the RDA housing set-aside fund and In- Lieu Affordable Housing Fund for this planning period (through June 2008). - Modify Program D.1-1 to read as follows: "The City shall encourage specific plans for land within its Sphere of Influence that includes increased residentiaJ capacity for multi-family deveJopment." - Modify Program F.3-1 to read as follows: "The City shall conduct a study to determine the appropriate inclusionary housing requirement for commercial deveJopment and to promote mixed-use development and a jobs/housing - balance. ".>..,..-- CITY COUNCIUREDEVELOPMENT AGENCY MINUTES NOVEMBER 11, 2003 PAGE 9 - Modify Policy H.2. to read as follows: "The City shall ensure zoning compatibility when integrating public affordable housing projects into existing residential neighborhoods. Adverse impacts relating to neighborhood stability and quality of life issues shall also be considered." - Modify Program J.5-1 to read as follows: "The City shall further study the housing needs of farm workers and, if determined necessary or appropriate, update the Development Code to include provisions for development of farm worker housing on properties zoned Agriculture, Mixed-Use, and Apartments." - Page 34, Table 6 - Industry, emphasize the following categories: Transportation and warehousing, and utilities; Educational, health and social services; and Public administration by directing staff to use bold-face type on these specific categories and expanding on these industry categories in the paragraph below the tabJe. - Page 69, Water, modify the last sentence in the second paragraph to read as follows: 'Without additional water supplies or a substantial reduction in current usage, it is unlikely that an adequate water supply will be available to accommodate the assigned regional housing allocation." - Page 69, Water, modify the third paragraph by deleting the last sentence and inserting the replacement sentence as follows: "This program will be closely monitored and the results will be evaluated in terms of water supply impact." - Page 71, Government Constraints, modify the second paragraph to correct the number of basic costs (i.e., change to "six" or "several"). - Page 71, Government Constraints, fourth paragraph, last sentence. Direct staff to research the NFPA Building Codes. - Page 75, third paragraph, direct staff to include a Policy Statement regarding unfunded mandates. - Page 85, Water Availability, Is the City currently using more than 91 % (or 94% as indicated on page 69) of its available average annual water resources? Direct staff to modify for consistency. - Page 86, Financial Costs, Delete the phrase "As a rule of thumb,..." and modify the sentence to read as follows: "Construction loans are generally two or more percentage points above the prime rate." - Page 92, #14, Direct staff to expand/amplify the statement to describe the benefits of creating a South County or Inter-city Housing Authority to address the potential of meeting categorical housing needs as a region, as well as providing a reasonable approach to a "jobs-housing" balance. - Policy B.4 and Program B.4-1 - Modify to specify "Mixed-Use and Multi- Family" Residential Height Limit. - Page 1, 1.1 Purpose, Correct typographicaJ numbering error (i.e., use 1., 2., 3., or a., b., c.) - Page 64, Table 15, Jower the Regional Housing Needs Allocation numbers to be more in line with the original numbers obtained from HCD. - CITY COUNCIUREDEVELOPMENT AGENCY MINUTES NOVEMBER 11, 2003 PAGE 10 Council Member Lubin moved to continue the Public Hearing for General Plan Amendment 03-005, consideration of the 2003 Housing Element, to the next regular City Council Meeting of November 25, 2003. Council Member Costello seconded the motion, and on the following roll-call vote, to wit: AYES: Lubin, Costello, Dickens, and Ferrara NOES: None ABSENT: Runels There being 4 AYES, 0 NOES, and 1 ABSENT, the motion is hereby declared to be passed. 12. CITY COUNCIL MEMBER ITEMS: None. 13. CITY MANAGER ITEMS City Manager Adams announced that the next City Hall Feasibility Study and Needs Assessment public workshop would be held this Thursday, November 13th at 6:30 p.m. in the City Council Chambers to identify the advantages and. disadvantages of site alternatives and design characteristics in order to select preferred alternatives for further analysis. 14. COUNCIL COMMUNICATIONS None. 15. STAFF COMMUNICATIONS None. 16. COMMUNITY COMMENTS AND SUGGESTIONS John Keen, Arroyo Grande, referred to farm worker housing on agricuJtural land and inquired how the proposed 100-foot buffer. would affect that. 17. ADJOURNMENT MaY~ the meeting at 11 :08 p.m. . Tony M. E ara, Mayor/Chair . . ATTEST: Kelly Wetm re, irector of Administrative Services/ Deputy City Clerk/Agency Secretary (Approved at CC Meeting ll' 25-03 )